US Senate Advances GENIUS Act Stablecoin Regulation With Bipartisan Support

The U.S. Senate has advanced the GENIUS Act, a bipartisan bill aimed at regulating stablecoins to integrate them into mainstream payments while imposing strict operational standards such as full backing by U.S. dollars or liquid assets and annual audits for large issuers. The legislation, strongly supported by President Donald Trump and several Senate leaders, seeks to establish a clear regulatory framework including capital and liquidity requirements, anti-money laundering compliance, and transparency measures, with the goal of making the U.S. the "crypto capital of the world." Despite broad support, some Democrats, including Senator Elizabeth Warren, have expressed concerns about the bill potentially enabling greater surveillance and data monetization by large tech firms like Meta, especially if waivers allow companies to circumvent regulations. Warren and Senator Richard Blumenthal specifically called on Meta’s CEO to clarify the company’s stablecoin plans amid fears of intrusive data practices and influence on the legislation, recalling the shutdown of Meta’s previous stablecoin projects Libra and Diem. The bill faces opposition from smaller banks worried about deposit drains, while larger banks consider issuing their own stablecoins to compete. Following Senate approval, the GENIUS Act will proceed to the House for consideration, with President Trump expected to sign it into law.